Modern Real Estate: Can Indian Investors Safely Invest in REITs?

A REIT is a hybrid investment product with features of equity and debt. It’s a way to get both regular income and capital appreciation.

Share on facebook
Share on twitter
Share on linkedin
Modern Real Estate: Can Indian Investors Safely Invest in REITs?

REITs (real estate investment trusts) have marked their worthy place in developed markets like the USA and UK, and the Indian audience has recently started exploring this real estate investment concept. As the market is in its infancy, Indian investors are bound to have several questions regarding the credibility of REITs. 

A REIT is a company that makes investments in income-generating real estate. Investors who are interested in the asset can buy shares of a REIT and share ownership. There are several ways an investor can add a REIT to their portfolios. Here’s a beginner-friendly guide to understand the different types of REITs and its pros and cons. 

In the Indian market, REITs are becoming a popular choice for investors who want to diversify their real estate investments. In 2021, two positive developments took place in favour of real estate investment trusts. 

The Future Of REITs in India 

Initially, the trading lot size of a RIET was 200 and upwards. To make it affordable for smaller investors, the size has been reduced to one. This move will increase the trading volumes, liquidity, and result in better price discovery in the long run. 

Also read: Passive Income: The Ultimate Guide to Financial Freedom & Master Investment Techniques

SEBI has also made provisions to include REITs in indices, as was not the case earlier. This hampered the recognition of this investment class in the market and witnessed a smaller investor base. Real estate in India is a highly valuable asset that holds massive growth potential and emotional value. REITs enable a more democratic approach to real estate by exposing the target investors to a diversified portfolio consisting of various income-generating commercial properties at affordable prices. Traditionally, owning a commercial real estate property in India was only a league for seasoned investors. The general, working-class public could not own a CRE on accounts of its being highly expensive. Via REITs, it’s possible for regular investors who gravitate towards residential properties to get fractional ownership of CREs. 

How Safe Are REITs?

If you are an aggressive investor and looking to add commercial properties to your long-term investment portfolio, a REIT is a good starting point. As the market matures in India, the future holds the possibility of having more REITs which can help you diversify your investments among two three similar assets. 

Assetmonk is an online platform offering real estate investment opportunities with an IRR of 14-21% in top cities such as Bangalore, Hyderabad, and Chennai. 


REIT investment is an excellent approach to differentiate your portfolio beyond typical stocks and bonds and can be lucrative because of its solid dividends and long-run appreciation of capital.

In order to reduce risk, REIT or the investment in real property mutual funds should be dispersed among a number of property or fund categories and not more than 10 percent of the portfolio.

So far in 2021, real estate investment trusts (REITs) were exceptional performers. The S&P 500 Index is a 21 percent increase in revenue of around 30 percent (price plus dividends), which is easily achieved by the end of August.

Related Articles

istockphoto 1313421433 612x612 1

Pradhan Mantri Kisan Samman Nidhi Yojana

What is the Pradhan Mantri Kisan Samman Nidhi Yojana? The Pradhan Mantri Kisan Samman Nidhi Yojana is a plan initiated by the Indian government. It gives income help of as much as Rs. 6000/- annually to all marginal and small farmers. Families of land-owning farmers receive an Rs. 6000/-  cash advantage a year under the Pradhan Mantri Kisan Samman Nidhi Yojana plan. This amount will get paid Rs. 2000/- in 3 equal payments per 4 months. Also, read Saving Schemes in India. The Motive of the Pradhan Mantri Kisan Samman Nidhi Yojana? As we all know, agriculture is the backbone in the Indian economy. So, farmers are an important part of society. But, the economy has socioeconomic gaps between the urban areas with rural areas. So, farmers battle with long-term profitability. This problem has afflicted the majority of India’s people since its freedom. The state and federal governments have worked to solve this challenge. They have also introduced a variety…

Read more
istockphoto 951524746 612x612 1

Post Office Time Deposit

So, what is the Post Office Time Deposit Scheme? India Post provides the post office time deposit as a modest savings program for Indians. Post Office Time Deposit Scheme is a savings account investment provided by India Post. This program gets intended for depositors who desire to make a one-time deposit with an FD of 5-year which is a tax advantage. With a few exceptions, it is identical to a bank fixed deposit. People can create a post office time deposit account by approaching their closest post office or by utilizing India Post’s official app or website. India Post has been in existence since 1854. It is the most globally disseminated postal network, with over 1.55 lakh offices spread over India. Majorly known for mail delivery, India Post also offers these services: Small savings schemes. Postal Life Insurance and Rural Postal Life Insurance Instant money order E-money order. Mutual funds. Services for money transfer Also read Post Office Investments –…

Read more
istockphoto 1364622197 612x612 1


PPF Vs SSY: What is the difference between the two? Sukanya Samriddhi Yojana Account (SSY) and Public Provident Fund (PPF) are the safest investments. These are accessible to those desiring significant financial development with a low-risk component. So, if you wish to invest in any or both of these schemes, you would investigate and check. Financial objectives, risk tolerance, rate of interest, and versatility should all get addressed. Read SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates. PPF Vs SSY PPF and SSY are solid investment options, although they differ in important ways. The Sukanya Samriddhi Yojana is a female child welfare plan. It helps to safeguard a girl child’s future. But, the PPF is a program that enables depositors to receive zero-tax interest. In India, the Public Provident Fund (PPF) plan provides a long-term investing choice. It provides high profits while also giving tax deductions to the investor. A PPF account may get created in any private or…

Read more
Small Savings Schemes

Small Savings Schemes

Small savings schemes are an excellent way to save money. They offer a good rate of interest and can be used as an alternative form of collateral for investments, bonds, and property. The following schemes are available throughout the country and are some of the most popular ones that you can consider: Post Office Time Deposit Scheme The Post Office Time Deposit Scheme (POSTD) is a small savings scheme launched by the Government of India to provide investment opportunities in the secondary market. The scheme was launched on 15th September, 2015. This scheme is popular in rural as well as remote corners of the country, where the people have limited access to other financial products or alternative investments. The Ministry of Finance sets the interest rates for this scheme based on the performance of government securities, which is generally spread across the yields of the government sector. For 2022, the rates of interest are 5.5%, 5.7%, 5.8%, and 6.7% for…

Read more
istockphoto 1033711098 612x612 1

UAN Helpdesk

What is the UAN helpdesk for PF account holders? UAN is a 12-digit Universal Account Number that is assigned to every PF account holder at the time of joining the first job. The PF number when allocated, is used for each organization through the use of UAN. The new PF identification number that the person is associated with is his UAN in each new company of which an employee is a part. UAN can be described as a code that is used to identify several PF account IDs for an individual participant. It serves as an umbrella for multiple PF IDs assigned to individuals by various organizations. Also read UAN Registration & Activation Process Online. What exactly is UAN Helpdesk? The Employee’s Provident Fund Organization, India has a separate helpdesk online for (Universal Account Number) UAN-related issues and complaints. Users can access the helpdesk online and resolve their issues on their own or contact the executive offline. Employees can also…

Read more
child saving scheme

Child Saving Schemes

A child is the most precious thing in your life, and it’s important that you take care of them. However, it can be hard to know how much money you should save for their future education, health, and insurance needs. There are many different types of child saving schemes available for parents who want to safeguard their children from financial difficulties later in life. Here are some examples: Sukanya Samriddhi Scheme The Sukanya Samriddhi Yojana is a child saving scheme specially made for girl children. It was launched by Prime Minister Narendra Modi on January 22, 2015. The objective of this scheme is to promote the financial inclusion of girls in India by incentivizing them to save money through the Sukanya Samriddhi account. The interest rate ordered by this scheme is 7.6% per annum, and the minimum and maximum investment amounts are ₹250 and ₹1.5 lakh per annum respectively. Also, the maturity period of the Sukanya Samriddhi Scheme depends on…

Read more